NYSE Euronext has completed its acquisition of Nyfix, a provider of solutions that optimise trading efficiency, in an all-cash deal for approximately USD144m, or USD1.675 per common share without interest plus preferred stock consideration.  

The acquisition, which was made through NYSE Technologies, expands NYSE Euronext’s pre-trade product offering and global buy-side and sell-side communities.

With the completion of the acquisition, the Nyfix Fix business, which incorporates the company’s Nyfix Marketplace and the Fix Software business, now becomes part of the offerings of NYSE Technologies. 

Nyfix Euro Millennium operations will cease immediately with a view to customers bringing their liquidity to SmartPool, the European dark liquidity venue created by NYSE Euronext in partnership with investment banks.  

The Nyfix Transaction Services US electronic agency execution business comprised of its direct market access and algorithmic products and the Millennium Alternative Trading System are being acquired by ConvergEX, subject to customary closing conditions, including regulatory approvals.

“The natural synergies born of this combination should prove beneficial for our customers and shareholders,” says Larry Leibowitz (pictured), group executive vice president, head of US markets and global technology, NYSE Euronext. “This transaction complements our strategic corporate goals and expands our points of connectivity with customer trading communities.  We would also like to recognise the efforts of Nyfix employees who helped to pioneer electronic trading and welcome the Nyfix community to NYSE Euronext.”

 “With the Nyfix Marketplace, NYSE Technologies now provides a vital and unique connectivity link between the buy-side and sell-side at the point of origin in the trade flow process,” adds Stanley Young, chief executive officer of NYSE Technologies and co-chief investment officer, NYSE Euronext. “This includes more than 450 buy-side institutions and more than 600 sell-side institutions, and connections to exchanges and other electronic trade execution venues around the world.”

NYSE Euronext’s acquisition of Nyfix was announced on 27 August and was approved by Nyfix stockholders on 3 November.

Citigroup acted as financial adviser and Wachtell, Lipton, Rosen & Katz as legal adviser to NYSE Euronext on this transaction. Nyfix was represented by Evercore Partners as financial adviser and WilmerHale as legal adviser.